Wednesday, August 19, 2009

Hello there.Let's talk about irregular correction ABC's. An irregular correction is when the "b" wave tops higher then previous wave "a" high. This is a perfect bull trap because when we think the market will move higher, he starts correcting on a tremendous "c" wave down.Now, "c" waves usually respects certain Fibonacci ratios based on "a" price movement. It can be:c = ac = 1,618*ac = 2,618*aWith that in mind and assuming that the nasdaq is making an irregular corrective abc, with a little math c = 1,618*a=75,07 points. the market has done 76,4... pretty close.

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